While no price range was mentioned for Hays County’s potential investment at this point, Commissioner Whisenant did state that new debt would have to be issued since it will be more money than the county can afford in cash
Note: We are informed that Pct. 1 Commissioner Debbie Ingalsbe pulled the $6 million Old Bastrop Rd reconstruction project item from the Court's Tuesday agenda. Mr. Brannon and Judge Bert Cobb went toe-to-toe during public comments about what "truth" means. This was a 'must watch' session of the commissioners court, with lots of interesting info and action. Unfortunately for court watchers and the public (or conveniently for court members) the court's live stream video service unexplainably went off the air.
Send your comments and news tips to roundup.editor@gmail.com, to Mr. Brannon (see below) or click on the "comments" button at the bottom of the story
By Sam Brannon
Hays Citizens' Budget Project
This past Sunday we alerted readers to two items on the agenda for Tuesday morning’s Hays County Commissioners Court meeting. This update addresses the proposed LCRA Asset purchase.
LCRA Story Link – http://hayscountyroundup.blogspot.com/2011/04/countys-bid-for-lcra-water-and.html
One of the concerns on the LCRA Asset Purchase agenda item was that there was no backup documentation provided prior to the meeting, and the agenda stated that some action was to be taken. On Tuesday morning in court, no backup materials were provided so we have limited additional insight to what the county is really trying to accomplish here. The good news is that no action was taken, largely due to resistance from Commissioners Ingalsbe and Jones. Commissioner Jones has stated several times that he doesn’t think Hays County should be in the water pipeline business.
Commissioner Conley left the meeting to head to D.C. before this item came up for discussion, so Commissioner Whisenant shared what he knew about it, which he admitted was not a great deal. The backup materials were to come from LCRA but Whisenant noted that getting any information from LCRA has been difficult.
Here’s what we gathered from Commissioner Whisenant’s discussion:
1) There is a coalition of municipalities (20+?), and possibly other organizations, who are considering making an offer together for the collection of LCRA assets for sale. I’ve requested a list of the coalition members from Commissioner Whisenant.
2) LCRA’s current deadline for an offer is May 23rd, which seems to be extremely aggressive given the complexity of putting a deal like this together – a wide variety of assets, a large number of participants, complex valuations and other diligence, negotiations, debt agreements, etc.
3) While no price range was mentioned for Hays County’s potential investment at this point, Commissioner Whisenant did state that new debt would have to be issued since it will be more money than the county can afford in cash. Given the short time frame for putting together an offer, Hays residents will not be given an opportunity to vote on the issuance of the debt. This is VERY concerning given that Hays County is already scheduled to have $357 million in debt within one year, and that the collateral for the existing and new debt from this purchase is all of the taxable property in Hays County.
4) Commissioner Whisenant explained that due to confidentiality required by LCRA, the public will have very little view into mechanics of the deal. I find this is completely unacceptable. If county officials can not enter into an agreement with LCRA that allow taxpayers to have a full view of the deal, then we should not be moving forward on the this project at all.
5) Commissioner Whisenant confirmed that the water lines currently serve about 3,000 retail customers, and about another 7,000 through water supply companies.
6) He also confirmed that the purchase of the water lines will likely trigger other investments in infrastructure, so this is a big question mark. It sounded as if there is a much broader plan in play.
In short, there are many unanswered questions to cover in a very short amount of time, and firm, healthy skepticism is in order. Further, some of the comments left on the previous story from Sunday indicate there may be a substantial back story here that we need to understand.
At this point I’m very uncomfortable with the aggressive time line and the lack of a full view by taxpayers, as well as taking on additional non-voter-approved debt. We would want full-on Public Hearings on the county's financial situation and full-disclosure on all aspects of this deal before moving forward.
If you share these concerns, please write or call your County Judge and Commissioner(s) today.
For further updates as I get them, write to me at: LoveHaysCounty@hotmail.com
3 comments:
Heretofore I have been suspect about Sam Brannon's economic beliefs and ulterior political agenda. When he says "we have a spending problem and not a revenue problem," I believe his thinking is short-sighted and cognitively weak - possibly due to a dose of unstated political opportunism.
But regarding his recent articles about potential county spending on the LCRA water system and the larger picture agendas regarding special interest subdivision projects and their questionable timing, I am 100% on board with Brannon.
Personally, I think the right kind of business growth - if it generates good paying jobs, increases commercial tax revenue, does not require special interest infrastructure county welfare spending or unnecesary property tax incentives, and does not further suck up the already drought-limited water (or "uglify" the remaining beauty in Hays County) - would be acceptable to most local citizens.
Hence, if Brannon and his group are the ones who will hold Bert, Will, et al to their elected official responsibility to clearly explain and justify their spending, so be it. Someone needs to do it.
Not only will all of us Hays Countians feel better informed about what is really going on around us, but it will also offer Bert, Will, and the rest of the county commissioners the opportunity to improve their currently tainted political image - and possibly to start leaving a positive legacy that is not too common for local politicians these days.
Now is the time citizens must more than ever force politicians at all levels of government to change their modus operandi from special interest secrecy and hidden agendas to public interest disclosure and voter/community respect.
Such demands must become a natural politician-citizen pugilism that will be the citizen's "new world order." Because when it comes to our political and economic lives, now is definitely NOT the time to "Honor Thy Father."
Have at it, Sam. You have my blessing.
After reading my comment above once it was posted, I find the use of the word "blessing" to be much too self-reverential.
A more humble and "me" word(s) would be:
"Have at it, Sam. You have my strong support."
Many thanks to each one of you questioning the Commissioners, HTGWB and any other group that does the county's business. Most people have to spend their time cranking out a living and are most appreciative of those talents that look out for the good of the county. We all are important and need to work together for the greater good.
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